№ 10/2019

Fìnansi Ukr. 2019 (10): 73–88https://doi.org/10.33763/finukr2019.10.073

TAX POLICY

KOSHCHUK Tetiana ¹

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-1013-4603

Ways to improve taxation for digital companies

It haidentified that there are exacerbations of tax evasion and tax avoidance issues that arise from the particularities of providing services by large digital companies and changing digital business models in the face of dynamic technological advances. Measures already approved globally to counteract aggressive tax planning do not effectively address the challenge of fair taxation on digital income. The OECD is considering further changes in international taxation to improve taxation for digital companies. The European Commission has also put forward initiatives for a harmonized digital services tax (a short-term proposal) and for corporate income tax based on establishing a significant digital presence (a long-term solution). However, the adoption of relevant global and pan-European decisions is currently facing a number of rather significant economic obstacles (primarily the risks of double taxation and slowdown in GDP growth, different national tax strategies of companies), as well as technical and political complications. Some EU members, unwilling to wait for consensus at the international level, are developing national measures to balance tax burden on digital and “traditional” businesses, which, on the one hand, leads to increased dialogue at the OECD and EU level, and on the other – threatens to increase the fragmentation of the European market. The innovations aimed at taxing digital income, which are applied or discussed in Italy, France, the United Kingdom, Belgium, Slovakia, Austria, are analyzed. Recommendations are developed to take into account global and European trends in taxation of digital companies in Ukraine before and after the approval of relevant international initiatives.

Keywords:taxing the digital economy, tax evasion, tax avoidance, corporate income tax, permanent establishment, digital permanent establishment, digital services tax

JEL: H21, H25, H26, O32

Koshchuk T. . Ways to improve taxation for digital companies / T. . Koshchuk // Фінанси України. - 2019. - № 10. - C. 73-88.

Article original in Ukrainian (pp. 73 - 88)

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